{"id":39498,"date":"2025-11-26T09:11:18","date_gmt":"2025-11-26T09:11:18","guid":{"rendered":"https:\/\/agooka.com\/news\/usa\/alibabas-ceo-says-he-doesnt-see-much-of-an-issue-with-an-ai-bubble-and-plans-to-invest-aggressively\/"},"modified":"2025-11-26T09:11:18","modified_gmt":"2025-11-26T09:11:18","slug":"alibabas-ceo-says-he-doesnt-see-much-of-an-issue-with-an-ai-bubble-and-plans-to-invest-aggressively","status":"publish","type":"post","link":"https:\/\/agooka.com\/news\/usa\/alibabas-ceo-says-he-doesnt-see-much-of-an-issue-with-an-ai-bubble-and-plans-to-invest-aggressively\/","title":{"rendered":"Alibaba&#8217;s CEO says he doesn&#8217;t see &#8216;much of an issue&#8217; with an AI bubble and plans to invest &#8216;aggressively&#8217;"},"content":{"rendered":"<figure><img decoding=\"async\" src=\"https:\/\/i.insider.com\/6926a33489026fbb4d0e72b8?format=jpeg\" alt=\"Eddie Wu Alibaba\"\/><figcaption>Alibaba&#039;s CEO, Eddie Wu, brushed off AI bubble fears and said that the Chinese tech giant plans to invest aggressively in AI.<\/p>\n<p>XU KANGPING \/ Feature China\/Future Publishing via Getty Images<\/p>\n<\/figcaption><\/figure>\n<ul>\n<li>Alibaba CEO Eddie Wu says he doesn&#039;t see &quot;much of an issue&quot; with an AI bubble.<\/li>\n<li>Wu said AI demand is outpacing global chip supply, and the company plans to invest &quot;aggressively.&quot;<\/li>\n<li>The Chinese tech giant posted a 5% increase in revenue year-over-year for its September quarter.<\/li>\n<\/ul>\n<p>Alibaba&#039;s CEO brushed off talk of an AI bubble and said he&#039;s doubling down on spending.<\/p>\n<p>The CEO of the Chinese tech giant, Eddie Wu, said on Alibaba&#039;s second-quarter earnings call on Tuesday that the company &quot;doesn&#039;t really see much of an issue in terms of a so-called AI bubble.&quot;<\/p>\n<p>&quot;We&#039;re not even able to keep pace with the growth in customer demand,&quot; Wu said, adding that the pace at which Alibaba can deploy new servers is insufficient.<\/p>\n<p>&quot;In the next three years to come, AI resources will continue to be under supply,&quot; he said.<\/p>\n<p>Wu said that the surge in demand isn&#039;t coming from hype but from real-world AI adoption across the economy, such as across product development, manufacturing processes, and supporting companies.<\/p>\n<p>He said that Alibaba&#039;s Qwen app, launched just last week, surpassed 10 million downloads in its first week.<\/p>\n<p>On Tuesday, Alibaba Group posted 247.8 billion yuan,or $34.8 billion, in revenue for the quarter ending September 30, a 5% increase from last year.<\/p>\n<p>Profits were hit by heavy spending on AI and commerce. Net income fell 53% from a year earlier to 20.6 billion yuan due to a &quot;decrease in income from operations.&quot; Sales and marketing expenses surged, more than doubling from a year ago.<\/p>\n<p>The cloud division, which includes Alibaba&#039;s Qwen platform, led the company&#039;s growth. The cloud business grew 34% to 39.8 billion yuan, driven by &quot;public cloud revenue growth, including the increasing adoption of AI-related products.&quot;<\/p>\n<p>Wu said on the call that the company is planning to invest &quot;aggressively&quot; in AI infrastructure to meet demand.<\/p>\n<p>Alibaba announced in February that it would invest 380 billion yuan in AI infrastructure over the next three years.<\/p>\n<p>&quot;In big picture terms, I would say that the 380 billion figure we had mentioned previously might be on the small side,&quot; Wu said on Tuesday.<\/p>\n<p>The company&#039;s stock is up more than 86% this year.<\/p>\n<h2>AI bubble chatter<\/h2>\n<p>Wu&#039;s remarks contrast with those of Alibaba&#039;s chairman, Joe Tsai.<\/p>\n<p>Tsai said at the HSBC Global Investment Summit in March that he&#039;s starting to &quot;see the beginning of some kind of bubble,&quot; pointing to the rush to build data centers.<\/p>\n<p>Big Tech firms, including Microsoft, Amazon, Google, and Meta, are collectively expected to spend $320 billion on capital expenditures this year as they race to expand their AI infrastructure.<\/p>\n<p>The AI bubble debate has split tech leaders across the industry.<\/p>\n<p>Some executives have rejected the idea that the AI boom is overheating. Last week, Nvidia CEO Jensen Huang dismissed fears of an AI bubble on his company&#039;s latest earnings call.<\/p>\n<p>&quot;There&#039;s been a lot of talk about an AI bubble,&quot; Huang said. &quot;From our vantage point, we see something very different.&quot;<\/p>\n<p>Others have been more cautious. OpenAI CEO Sam Altman said in August that investor enthusiasm has run ahead of reality.<\/p>\n<p>&quot;Are we in a phase where investors as a whole are overexcited about AI? My opinion is yes. Is AI the most important thing to happen in a very long time? My opinion is also yes,&quot; he said.<\/p>\n<p>Read the original article on Business Insider<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Alibaba&#039;s CEO, Eddie Wu, brushed off AI bubble fears and said that the Chinese tech giant plans to invest aggressively in AI. XU KANGPING \/ Feature China\/Future Publishing via Getty Images Alibaba CEO Eddie Wu says he doesn&#039;t see &quot;much of an issue&quot; with an AI bubble. Wu said AI demand is outpacing global chip [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":39499,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[],"class_list":{"0":"post-39498","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-usa"},"_links":{"self":[{"href":"https:\/\/agooka.com\/news\/wp-json\/wp\/v2\/posts\/39498","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/agooka.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/agooka.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/agooka.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/agooka.com\/news\/wp-json\/wp\/v2\/comments?post=39498"}],"version-history":[{"count":0,"href":"https:\/\/agooka.com\/news\/wp-json\/wp\/v2\/posts\/39498\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/agooka.com\/news\/wp-json\/wp\/v2\/media\/39499"}],"wp:attachment":[{"href":"https:\/\/agooka.com\/news\/wp-json\/wp\/v2\/media?parent=39498"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/agooka.com\/news\/wp-json\/wp\/v2\/categories?post=39498"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/agooka.com\/news\/wp-json\/wp\/v2\/tags?post=39498"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}